Islanders, Rangers launch online TV channels

Zealous
hockey fans never seem to get enough of their NHL teams, but now there may be a
fix.

Through
NeuLion, an Internet-protocol TV company, the New York Islanders and Rangers
have become the first NHL teams to launch online TV channels brimming with
videos of player pregame interviews, morning skates and game highlights.
YouTube-type features such as user playlists and personal profiles are also
part of the offerings.

The channels provide an additional touchpoint with
consumers and a possible new revenue stream.

More
than 20 other NHL teams have had discussions with the company, and five to 10
more team channels are expected to launch in time for the 2007-08 season,
according to Chris Wagner, a company executive vice president.

For
teams like the Islanders, who don’t have their own network like the Yankees’
YES or Mets’ SportsNet New York, the channels offer valuable in- and
out-of-market exposure, an additional touchpoint with consumers and a possible
new revenue stream. And even the more beloved Rangers stand to benefit
mightily, with the breadth of their team-specific video offerings far exceeding
what’s available elsewhere.

Isles
owner Charles Wang and Cablevision founder Charles Dolan are partners in a
Chinese channel hosted by NeuLion, so it makes sense that their teams would be
first to launch IPTV channels. (Wang’s wife, Nancy Li, also runs the company.)

The
Islanders launched their channel, ITV, at the start of the season and have had
11,000 subscribers sign up for a free trial. The Rangers launched their
channel, New York Rangers On Demand, in conjunction with their opening playoff game April 12. Within eight hours,
41,000 free videos had been viewed.

Wagner
said the Rangers had more videos viewed in 24 hours than any of NeuLion’s other
channels, including Dolan and Wang’s 31 Chinese TV channels with 15,000 paying
subscribers.

NeuLion
charges teams an upfront design fee and a monthly operational fee, then splits
all subsequent revenue that the channels generate. In return, they offer
content, subscription and digital asset management, as well as a billing
system.

To
date, neither team has generated any revenue from the channels, but they will
begin to do so next year, Wagner said. Ad placements will include not only
pre-roll inventory now becoming industry standard for video content, but
banners and video player wraps that can act in concert with the pre-roll video.
The Islanders are already approaching sponsors about adding commercial lead-ins
to videos, with the Rangers similarly formulating sponsorship plans. Wagner
said other clubs may sell subscriptions or offer pay-per-view videos.

The
Islanders hired a staff of four to update and load video onto the site. They
use mini-cameras that cost roughly $5,000 to film team practices and interview
players before games. They then edit the video on their laptops and upload it
to the site.

The
Rangers, meanwhile, posted more than 100 hours of video content during the
first week of Rangers On Demand, with production duties shared by NeuLion
personnel and in-house talent stationed with the club and MSG.